Enrolled Copy S.B. 47
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Sales and Use Tax Remittance Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Steve Eliason
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LONG TITLE
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General Description:
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This bill amends the requirements governing when a seller has to pay or collect and remit
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sales and use tax.
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Highlighted Provisions:
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This bill:
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▸ repeals the requirement that a seller has to pay or collect and remit the sales and use tax if
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the seller sells tangible personal property, products transferred electronically, or services
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for storage, use, or consumption in the state in more than a certain number of separate
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transactions; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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This bill appropriates $0 in operating and capital budgets for fiscal year 2026, including
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($2,920,000) from General Fund and $2,920,000 from various sources as detailed in this bill.
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-12-107, as last amended by Laws of Utah 2022, Chapter 273
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59-12-107.6, as last amended by Laws of Utah 2023, Chapter 361
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 59-12-107 is amended to read:
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59-12-107 . Definitions -- Collection, remittance, and payment of tax by sellers or
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other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
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liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt -- S.B. 47 Enrolled Copy
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Penalties and interest.
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(1) As used in this section:
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(a) "Ownership" means direct ownership or indirect ownership through a parent,
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subsidiary, or affiliate.
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(b) "Related seller" means a seller that:
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(i) meets one or more of the criteria described in Subsection (2)(a)(i); and
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(ii) delivers tangible personal property, a service, or a product transferred
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electronically that is sold:
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(A) by a seller that does not meet one or more of the criteria described in
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Subsection (2)(a)(i); and
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(B) to a purchaser in the state.
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(c) "Substantial ownership interest" means an ownership interest in a business entity if
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that ownership interest is greater than the degree of ownership of equity interest
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specified in 15 U.S.C. Sec. 78p, with respect to a person other than a director or an
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officer.
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(2)(a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section
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59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit
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the sales and use taxes imposed by this chapter if within this state the seller:
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(i) has or utilizes:
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(A) an office;
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(B) a distribution house;
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(C) a sales house;
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(D) a warehouse;
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(E) a service enterprise; or
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(F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
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(ii) maintains a stock of goods;
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(iii) regularly solicits orders, regardless of whether or not the orders are accepted in
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the state, unless the seller's only activity in the state is:
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(A) advertising; or
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(B) solicitation by:
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(I) direct mail;
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(II) electronic mail;
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(III) the Internet;
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(IV) telecommunications service; or
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(V) a means similar to Subsection (2)(a)(iii)(A) or (B);
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(iv) regularly engages in the delivery of property in the state other than by:
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(A) common carrier; or
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(B) United States mail; or
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(v) regularly engages in an activity directly related to the leasing or servicing of
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property located within the state.
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(b) A seller is considered to be engaged in the business of selling tangible personal
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property, a product transferred electronically, or a service for use in the state, and
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shall pay or collect and remit the sales and use taxes imposed by this chapter if:
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(i) the seller holds a substantial ownership interest in, or is owned in whole or in
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substantial part by, a related seller; and
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(ii)(A) the seller sells the same or a substantially similar line of products as the
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related seller and does so under the same or a substantially similar business
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name; or
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(B) the place of business described in Subsection (2)(a)(i) of the related seller or
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an in state employee of the related seller is used to advertise, promote, or
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facilitate sales by the seller to a purchaser.
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(c) Subject to Section 59-12-107.6, each seller that does not meet one or more of the
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criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect
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and remit the sales and use taxes imposed by this chapter under Subsection (2)(b)
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shall pay or collect and remit the sales and use tax imposed by this chapter if the
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seller:
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(i) sells tangible personal property, products transferred electronically, or services for
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storage, use, or consumption in the state; and
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(ii) in either the previous calendar year or the current calendar year[:]
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[(A)] , receives gross revenue from the sale of tangible personal property, products
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transferred electronically, or services for storage, use, or consumption in the
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state of more than $100,000[; or] .
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[(B) sells tangible personal property, products transferred electronically, or
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services for storage, use, or consumption in the state in 200 or more separate
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transactions.]
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(d) A seller that does not meet one or more of the criteria provided for in Subsection
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(2)(a) or is not a seller required to pay or collect and remit sales and use taxes under
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Subsection (2)(b), Subsection (2)(c), or Section 59-12-107.6 may voluntarily:
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(i) collect a tax on a transaction described in Subsection 59-12-103(1); and
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(ii) remit the tax to the commission as provided in this part.
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(e) The collection and remittance of a tax under this chapter by a seller that is registered
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under the agreement may not be used as a factor in determining whether that seller is
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required by this Subsection (2) to:
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(i) pay a tax, fee, or charge under:
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(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
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(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
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(C) Section 19-6-714;
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(D) Section 19-6-805;
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(E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
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Charges; or
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(F) this title; or
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(ii) collect and remit a tax, fee, or charge under:
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(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
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(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
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(C) Section 19-6-714;
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(D) Section 19-6-805;
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(E) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
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Charges; or
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(F) this title.
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(f) A person shall pay a use tax imposed by this chapter on a transaction described in
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Subsection 59-12-103(1) if:
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(i) the seller did not collect a tax imposed by this chapter on the transaction; and
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(ii) the person:
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(A) stores the tangible personal property or product transferred electronically in
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the state;
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(B) uses the tangible personal property or product transferred electronically in the
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state; or
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(C) consumes the tangible personal property or product transferred electronically
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in the state.
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(g) The ownership of property that is located at the premises of a printer's facility with
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which the retailer has contracted for printing and that consists of the final printed
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product, property that becomes a part of the final printed product, or copy from
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which the printed product is produced, shall not result in the retailer being considered
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to have or maintain an office, distribution house, sales house, warehouse, service
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enterprise, or other place of business, or to maintain a stock of goods, within this
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state.
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(3)(a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this
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chapter from a purchaser.
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(b) A seller may not collect as tax an amount, without regard to fractional parts of one
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cent, in excess of the tax computed at the rates prescribed by this chapter.
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(c)(i) Each seller shall:
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(A) give the purchaser a receipt for the tax collected; or
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(B) bill the tax as a separate item and declare the name of this state and the seller's
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sales and use tax license number on the invoice for the sale.
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(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
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and relieves the purchaser of the liability for reporting the tax to the commission
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as a consumer.
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(d) A seller is not required to maintain a separate account for the tax collected, but is
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considered to be a person charged with receipt, safekeeping, and transfer of public
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money.
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(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
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benefit of the state and for payment to the commission in the manner and at the time
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provided for in this chapter.
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(f) If any seller, during any reporting period, collects as a tax an amount in excess of the
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lawful state and local percentage of total taxable sales allowed under this chapter, the
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seller shall remit to the commission the full amount of the tax imposed under this
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chapter, plus any excess.
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(g) If the accounting methods regularly employed by the seller in the transaction of the
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seller's business are such that reports of sales made during a calendar month or
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quarterly period will impose unnecessary hardships, the commission may accept
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reports at intervals that, in the commission's opinion, will better suit the convenience
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of the taxpayer or seller and will not jeopardize collection of the tax.
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(h)(i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
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and until such time as the commission accepts specie legal tender for the payment
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of a tax under this chapter, if the commission requires a seller to remit a tax under
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this chapter in legal tender other than specie legal tender, the seller shall state on
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the seller's books and records and on an invoice, bill of sale, or similar document
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provided to the purchaser:
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(A) the purchase price in specie legal tender and in the legal tender the seller is
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required to remit to the commission;
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(B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in
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specie legal tender and in the legal tender the seller is required to remit to the
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commission;
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(C) the tax rate under this chapter applicable to the purchase; and
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(D) the date of the purchase.
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(ii)(A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount
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of tax due under Subsection (3)(h)(i), a seller shall use the most recent London
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fixing price for the specie legal tender the purchaser paid.
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(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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the commission may make rules for determining the amount of tax due under
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Subsection (3)(h)(i) if the London fixing price is not available for a particular
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day.
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(4)(a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
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sales or use tax imposed by this chapter is due and payable to the commission
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quarterly on or before the last day of the month next succeeding each quarterly
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calendar period.
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(b)(i) Each seller shall, on or before the last day of the month next succeeding each
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quarterly calendar period, file with the commission a return for the preceding
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quarterly period.
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(ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
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tax required under this chapter to be collected or paid for the period covered by
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the return.
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(c) Except as provided in Subsection (5)(c), a return shall contain information and be in
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a form the commission prescribes by rule.
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(d)(i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
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based on the total nonexempt sales made during the period for which the return is
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filed, including both cash and charge sales.
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(ii) For a sale that includes the delivery or installation of tangible personal property at
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a location other than a seller's place of business described in Subsection (2)(a)(i),
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if the delivery or installation is separately stated on an invoice or receipt, a seller
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may compute the tax due on the sale for purposes of Subsection (4)(d)(i) based on
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the amount the seller receives for that sale during each period for which the seller
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receives payment for the sale.
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(e)(i) The use tax as computed in the return shall be based on the total amount of
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purchases for storage, use, or other consumption in this state made during the
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period for which the return is filed, including both cash and charge purchases.
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(ii)(A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a
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purchaser that is required to remit taxes under this chapter, but is not required
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to remit taxes monthly in accordance with Section 59-12-108, and that converts
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tangible personal property into real property.
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(B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit
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the taxes due under this chapter on tangible personal property for which the
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qualifying purchaser claims an exemption as allowed under Subsection
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59-12-104(23) or (25) based on the period in which the qualifying purchaser
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receives payment, in accordance with Subsection (4)(e)(ii)(C), for the
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conversion of the tangible personal property into real property.
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(C) A qualifying purchaser remitting taxes due under this chapter in accordance
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with Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of
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tax due on the qualifying purchaser's purchase of the tangible personal property
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that was converted into real property multiplied by a fraction, the numerator of
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which is the payment received in the period for the qualifying purchaser's sale
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of the tangible personal property that was converted into real property and the
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denominator of which is the entire sales price for the qualifying purchaser's
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sale of the tangible personal property that was converted into real property.
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(D) A qualifying purchaser may remit taxes due under this chapter in accordance
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with this Subsection (4)(e)(ii) only if the books and records that the qualifying
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purchaser keeps in the qualifying purchaser's regular course of business
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identify by reasonable and verifiable standards that the tangible personal
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property was converted into real property.
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(f)(i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, the commission may by rule extend the
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time for making returns and paying the taxes.
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(ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
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(g) The commission may require returns and payment of the tax to be made for other
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than quarterly periods if the commission considers it necessary in order to ensure the
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payment of the tax imposed by this chapter.
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(h)(i) The commission may require a seller that files a simplified electronic return
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with the commission to file an additional electronic report with the commission.
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(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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the commission may make rules providing:
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(A) the information required to be included in the additional electronic report
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described in Subsection (4)(h)(i); and
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(B) one or more due dates for filing the additional electronic report described in
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Subsection (4)(h)(i).
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(5)(a) As used in this Subsection (5) and Subsection (6)(b), [" ] "voluntary seller" means
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a seller that is:
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(i) registered under the agreement;
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(ii) described in Subsection (2)(d); and
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(iii) not a:
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(A) model 1 seller;
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(B) model 2 seller; or
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(C) model 3 seller.
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(b)(i) Except as provided in Subsection (5)(b)(ii), a tax a voluntary seller collects in
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accordance with Subsection (2)(d) is due and payable:
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(A) to the commission;
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(B) annually; and
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(C) on or before the last day of the month immediately following the last day of
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each calendar year.
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(ii) The commission may require that a tax a voluntary seller collects in accordance
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with Subsection (2)(d) be due and payable:
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(A) to the commission; and
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(B) on the last day of the month immediately following any month in which the
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seller accumulates a total of at least $1,000 in agreement sales and use tax.
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(c)(i) If a voluntary seller remits a tax to the commission in accordance with
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Subsection (5)(b), the voluntary seller shall file a return:
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(A) with the commission;
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(B) with respect to the tax;
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(C) containing information prescribed by the commission; and
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(D) on a form prescribed by the commission.
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(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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the commission shall make rules prescribing:
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(A) the information required to be contained in a return described in Subsection
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(5)(c)(i); and
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(B) the form described in Subsection (5)(c)(i)(D).
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(d) A tax a voluntary seller collects in accordance with this Subsection (5) shall be
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calculated on the basis of the total amount of taxable transactions under Subsection
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59-12-103(1) the voluntary seller completes, including:
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(i) a cash transaction; and
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(ii) a charge transaction.
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(6)(a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
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electronic return collects in accordance with this chapter is due and payable:
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(i) monthly on or before the last day of the month immediately following the month
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for which the seller collects a tax under this chapter; and
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(ii) for the month for which the seller collects a tax under this chapter.
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(b) A tax a voluntary seller that files a simplified electronic return collects in accordance
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with this chapter is due and payable as provided in Subsection (5).
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(7)(a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
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purchaser shall pay the sales or use tax directly to the commission if the vehicle is
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subject to titling or registration under the laws of this state.
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(b) The commission shall collect the tax described in Subsection (7)(a) when the vehicle
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is titled or registered.
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(8) If any sale of tangible personal property or any other taxable transaction under
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Subsection 59-12-103(1), is made by a wholesaler to a retailer:
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(a) the wholesaler is not responsible for the collection or payment of the tax imposed on
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the sale; and
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(b) the retailer is responsible for the collection or payment of the tax imposed on the sale
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if:
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(i) the retailer represents that the tangible personal property, product transferred
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electronically, or service is purchased by the retailer for resale; and
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(ii) the tangible personal property, product transferred electronically, or service is not
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subsequently resold.
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(9) If any sale of property or service subject to the tax is made to a person prepaying sales
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or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
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contractor or subcontractor of that person:
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(a) the person to whom such payment or consideration is payable is not responsible for
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the collection or payment of the sales or use tax; and
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(b) the person prepaying the sales or use tax is responsible for the collection or payment
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of the sales or use tax if the person prepaying the sales or use tax represents that the
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amount prepaid as sales or use tax has not been fully credited against sales or use tax
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due and payable under the rules promulgated by the commission.
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(10)(a) For purposes of this Subsection (10):
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(i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that
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term is defined in Section 166, Internal Revenue Code.
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(ii) "Bad debt" does not include:
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(A) an amount included in the purchase price of tangible personal property, a
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product transferred electronically, or a service that is:
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(I) not a transaction described in Subsection 59-12-103(1); or
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(II) exempt under Section 59-12-104;
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(B) a financing charge;
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(C) interest;
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(D) a tax imposed under this chapter on the purchase price of tangible personal
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property, a product transferred electronically, or a service;
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(E) an uncollectible amount on tangible personal property or a product transferred
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electronically that:
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(I) is subject to a tax under this chapter; and
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(II) remains in the possession of a seller until the full purchase price is paid;
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(F) an expense incurred in attempting to collect any debt; or
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(G) an amount that a seller does not collect on repossessed property.
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(b)(i) To the extent an amount remitted in accordance with Subsection (4)(d) later
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becomes bad debt, a seller may deduct the bad debt from the total amount from
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which a tax under this chapter is calculated on a return.
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(ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from
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the total amount of taxes due under this chapter the amount of tax the qualifying
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purchaser paid on the qualifying purchaser's purchase of tangible personal
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property converted into real property to the extent that:
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(A) tax was remitted in accordance with Subsection (4)(e) on that tangible
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personal property converted into real property;
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(B) the qualifying purchaser's sale of that tangible personal property converted
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into real property later becomes bad debt; and
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(C) the books and records that the qualifying purchaser keeps in the qualifying
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purchaser's regular course of business identify by reasonable and verifiable
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standards that the tangible personal property was converted into real property.
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(c) A seller may file a refund claim with the commission if:
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(i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
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the amount of the seller's sales that are subject to a tax under this chapter for that
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same time period; and
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(ii) as provided in Section 59-1-1410.
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(d) A bad debt deduction under this section may not include interest.
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(e) A bad debt may be deducted under this Subsection (10) on a return for the time
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period during which the bad debt:
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(i) is written off as uncollectible in the seller's books and records; and
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(ii) would be eligible for a bad debt deduction:
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(A) for federal income tax purposes; and
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(B) if the seller were required to file a federal income tax return.
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(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
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claims a refund under this Subsection (10), the seller shall report and remit a tax
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under this chapter:
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(i) on the portion of the bad debt the seller recovers; and
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(ii) on a return filed for the time period for which the portion of the bad debt is
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recovered.
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(g) For purposes of reporting a recovery of a portion of bad debt under Subsection (10)(f),
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a seller shall apply amounts received on the bad debt in the following order:
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(i) in a proportional amount:
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(A) to the purchase price of the tangible personal property, product transferred
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electronically, or service; and
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(B) to the tax due under this chapter on the tangible personal property, product
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transferred electronically, or service; and
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(ii) to:
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(A) interest charges;
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(B) service charges; and
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(C) other charges.
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(h) A seller's certified service provider may make a deduction or claim a refund for bad
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debt on behalf of the seller:
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(i) in accordance with this Subsection (10); and
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(ii) if the certified service provider credits or refunds the entire amount of the bad
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debt deduction or refund to the seller.
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(i) A seller may allocate bad debt among the states that are members of the agreement if
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the seller's books and records support that allocation.
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(11)(a) A seller may not, with intent to evade any tax, fail to timely remit the full
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amount of tax required by this chapter.
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(b) A violation of this section is punishable as provided in Section 59-1-401.
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(c) Each person that fails to pay any tax to the state or any amount of tax required to be
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paid to the state, except amounts determined to be due by the commission under
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Chapter 1, Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111,
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within the time required by this chapter, or that fails to file any return as required by
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this chapter, shall pay, in addition to the tax, penalties and interest as provided in
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Sections 59-1-401 and 59-1-402.
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(d) For purposes of prosecution under this section, each quarterly tax period in which a
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seller, with intent to evade any tax, collects a tax and fails to timely remit the full
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amount of the tax required to be remitted constitutes a separate offense.
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Section 2. Section 59-12-107.6 is amended to read:
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59-12-107.6 . Marketplace facilitator collection, remittance, and payment of sales
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tax obligation -- Marketplace seller collection, remittance, and payment of sales tax
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obligation -- Liability for collection.
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(1) A marketplace facilitator shall pay or collect and remit taxes imposed by this chapter in
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accordance with Section 59-12-107:
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(a) if the marketplace facilitator meets one or more of the criteria provided for in
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Subsection 59-12-107(2)(a) or (b); and
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(b) on the sales the marketplace facilitator made on the marketplace facilitator's own
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behalf.
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(2)(a) A marketplace facilitator shall pay or collect and remit taxes imposed by this
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chapter in accordance with Subsection (3) if the marketplace facilitator, in the
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previous calendar year or the current calendar year, makes sales of tangible personal
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property, products transferred electronically, or services on the marketplace
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facilitator's own behalf or facilitates sales on behalf of one or more marketplace
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sellers[:]
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[(i)] that exceed $100,000[; or] .
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[(ii) in 200 or more separate transactions.]
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(b) For purposes of determining if a marketplace facilitator [meets or exceeds one or
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both thresholds] exceeds the threshold described in this Subsection (2), a marketplace
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facilitator shall separately total:
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(i) the marketplace facilitator's sales; and
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(ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
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(c) A marketplace facilitator without a physical presence in this state shall begin
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collecting and remitting the taxes imposed by this chapter no later than the first day
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of the calendar quarter that is at least 60 days after the day on which the marketplace
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facilitator [meets or exceeds either] exceeds the threshold described in Subsection
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(2)(a).
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(3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit taxes
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imposed by this chapter for each sale that the marketplace facilitator:
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(a) makes on the marketplace facilitator's own behalf; or
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(b) makes or facilitates on behalf of a marketplace seller, regardless of:
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(i) whether the marketplace seller has an obligation to pay or collect and remit taxes
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under Section 59-12-107;
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(ii) whether the marketplace seller would have been required to pay or collect and
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remit taxes under Section 59-12-107 if the marketplace facilitator had not
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facilitated the sale; or
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(iii) the amount of the sales price or the purchase price that accrues to or benefits the
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marketplace facilitator, the marketplace seller, or any other person.
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(4) A marketplace facilitator shall comply with the procedures and requirements in this
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chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect
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and remit taxes except that the marketplace facilitator shall segregate, in the marketplace
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facilitator's books and records:
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(a) the sales that the marketplace facilitator makes on the marketplace facilitator's own
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behalf; and
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(b) the sales that the marketplace facilitator makes or facilitates on behalf of one or more
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marketplace sellers.
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(5)(a) The commission may audit the marketplace facilitator for sales made or facilitated
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through the marketplace facilitator's marketplace on behalf of one or more
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marketplace sellers.
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(b) The commission may not audit the marketplace seller for sales made or facilitated
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through the marketplace facilitator's marketplace on the marketplace seller's behalf.
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(6) Nothing in this section prohibits a marketplace facilitator from providing in a
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marketplace facilitator's agreement with a marketplace seller for the recovery of taxes,
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and any related interest or penalties to the extent that a tax, interest, or penalty is
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assessed by the state in an audit of the marketplace facilitator on a retail sale:
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(a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller;
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and
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(b) for which the marketplace facilitator relied on incorrect or incomplete information
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provided by the marketplace seller.
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[(7)(a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for
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failing to collect the taxes under this chapter for a sale on which the marketplace
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facilitator failed to collect taxes if the marketplace facilitator demonstrates, to the
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satisfaction of the commission, that:]
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[(i) the marketplace facilitator made or facilitated the sale through the marketplace
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facilitator's marketplace on or before December 31, 2022;]
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[(ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace
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seller and not on behalf of the marketplace facilitator;]
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[(iii) the marketplace facilitator and the marketplace seller are not affiliates; and]
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[(iv) the failure to collect taxes was due to a good faith error other than an error in
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sourcing.]
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[(b) For purposes of Subsection (7)(a):]
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[(i) for sales made or facilitated during the 2019 or 2020 calendar year, the
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marketplace facilitator is not liable for the amount the marketplace facilitator fails
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to collect due to error that is equal to the error rate, but not to exceed a 7% error
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rate;]
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[(ii) for sales made or facilitated during the 2021 calendar year, the marketplace
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facilitator is not liable for the amount the marketplace facilitator fails to collect
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due to error that is equal to the error rate, but not to exceed a 5% error rate; and]
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[(iii) for sales made or facilitated during the 2022 calendar year, the marketplace
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facilitator is not liable for the amount the marketplace facilitator fails to collect
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due to error that is equal to the error rate, but not to exceed a 3% error rate.]
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[(c) The commission shall calculate the percentages described in Subsection (7)(b):]
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[(i) using the total taxes due on sales that:]
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[(A) a marketplace facilitator made or facilitated in this state on behalf of one or
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more marketplace sellers during the calendar year that the sale for which the
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marketplace facilitator seeks relief was made or facilitated; and]
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[(B) are sourced to the state; and]
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[(ii) not including sales that the marketplace facilitator or the marketplace facilitator's
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affiliates directly made during the same calendar year.]
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[(8)] (7) A marketplace seller shall pay or collect and remit taxes imposed by this chapter
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for a sale of tangible personal property, a product transferred electronically, or a service
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that the marketplace seller makes other than through a marketplace facilitator if:
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(a) the sale is sourced to this state; and
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(b) the marketplace seller's sales in this state, other than through a marketplace
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facilitator, in the previous calendar year or the current calendar year[:]
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[(i)] exceed $100,000[; or] .
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[(ii) occur in 200 or more separate transactions.]
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[(9)] (8)(a) A marketplace seller may not pay or collect and remit taxes imposed by this
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chapter for any sale for which a marketplace facilitator is required to pay or collect
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and remit.
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(b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or
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collect and remit, or the marketplace facilitator's underpayment of, taxes imposed by
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this chapter for any sale for which a marketplace facilitator is required to pay or
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collect and remit the taxes imposed by this chapter.
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[(10)] (9)(a) A purchaser of tangible personal property, a product transferred
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electronically, or a service may file a claim for a refund with the marketplace
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facilitator if the purchaser overpaid taxes imposed under this chapter.
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(b) No person may bring a class action against a marketplace facilitator in any court of
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the state on behalf of purchasers arising from or in any way related to an
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overpayment of taxes collected and remitted on sales made or facilitated by the
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marketplace facilitator on behalf of a marketplace seller, regardless of whether such
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claim is characterized as a tax refund claim.
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[(11)] (10) Nothing in this section affects the obligation of a purchaser to remit the use tax
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described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator
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or marketplace seller failed to collect and remit a tax imposed by this chapter.
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Section 3. FY 2026 Appropriations.
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The following sums of money are appropriated for the fiscal year beginning July 1,
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2025, and ending June 30, 2026. These are additions to amounts previously appropriated for
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fiscal year 2026.
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Subsection 3(a). Operating and Capital Budgets
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Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
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Legislature appropriates the following sums of money from the funds or accounts indicated for
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the use and support of the government of the state of Utah.
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ITEM 1 To Utah State Tax Commission - Tax Administration
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From General Fund (3,280,000)
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From General Fund, One-time 360,000
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From General Fund Rest. - State Tax Commission
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Administrative Charge Account 3,280,000
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From General Fund Rest. - State Tax Commission
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Administrative Charge Account, One-time (360,000)
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Section 4. Effective Date.
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This bill takes effect on July 1, 2025.
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